Union hopes tax abatements boost local hiring

Dan Wallac, Beaumont Enterprise

By Dan Wallach

Updated 7:20 am, Monday, February 21, 2011

Wayne Boudreaux uses a Plasma Cutter to cut a 37 1/2 degree bevel cut on the end of a 6 inch diameter pipe during an Open House of the UA Local 195 Pipefitters new training facility in Midcounty. Bevel cutting allows space for two pieces of pipe to be welded together. The torch is cutting through the pipe at approximately 3500 degrees. Jefferson County's new policy requires industries seeking tax abatements -- which are reductions in taxes on newly built improvements for a period up to 10 years -- to offer invitations to bid on the work by local companies. .Dave Ryan/The Enterprise

Photo: Dave Ryan

Wayne Boudreaux uses a Plasma Cutter to cut a 37 1/2 degree bevel...

Robert Pittman, an instructor in the UA Local 195 Apprentice School classroom, talks about the new process unit that is now available to train students on, using water, at the new facility located behind the UA Local 195 Pipefitters union hall. Jefferson County's new policy requires industries seeking tax abatements -- which are reductions in taxes on newly built improvements for a period up to 10 years -- to offer invitations to bid on the work by local companies. .Dave Ryan/The Enterprise

Photo: Dave Ryan

Robert Pittman, an instructor in the UA Local 195 Apprentice School...

Chance Davis, a Journeyman welder who went through the five year training program, gives a demonstration of welding two beveled pipes together during an Open House at the UA Local 195 Pipefitters new training facility in Midcounty. The welding facility has been renovated and now has state of the art equipment for the students to work with. Jefferson County's new policy requires industries seeking tax abatements -- which are reductions in taxes on newly built improvements for a period up to 10 years -- to offer invitations to bid on the work by local companies. .Dave Ryan/The Enterprise

Photo: Beaumont

Chance Davis, a Journeyman welder who went through the five year...

Chance Davis, a Journeyman welder who went through the five year training program, gives a demonstration of welding two beveled pipes together during an Open House at the UA Local 195 Pipefitters new training facility in Midcounty. The welding facility has been renovated and now has state of the art equipment for the students to work with. Jefferson County's new policy requires industries seeking tax abatements -- which are reductions in taxes on newly built improvements for a period up to 10 years -- to offer invitations to bid on the work by local companies. .Dave Ryan/The Enterprise

The Pipe Fitters union is hoping that a new tax abatement policy for Jefferson County will help the contractors who hire its members compete for some of the work at industrial construction projects.

Jefferson County's former abatement policy required an industry only to make a "good faith effort" to hire locally, but had no monitoring requirements.

What a tax abatement generally means is that property taxes on improvements in a large-scale industrial project are forgiven for a prescribed period up to 10 years. The idea driving them is that they help make a multimillion-dollar investment more economically realistic, meaning Jefferson County eventually will collect increased receipts as well as benefit in the short-term from increased economic activity.

Critics have called abatements a giveaway that does not result in increased local hiring,

The new policy, which will affect the project at Valero Energy Corp.'s Port Arthur refinery and the revived petroleum coke gasification project in Beaumont, would force companies to "agree to be bound to hire locally," said Jefferson County Judge Jeff Branick.

On the other hand, "there's a requirement that the local contractors have to be competitive in bidding," Branick said.

"The old agreements were to use their efforts, but the new agreements are you will extend an invitation to all qualified contractors to bid," he said.